Canadian Utilities Reports 2013 First Quarter Earnings
26 Avril 2013 - 2:25PM
Marketwired
Canadian Utilities Limited (TSX:CU) (TSX:CU.X)
Canadian Utilities today reported higher Adjusted Earnings in
the first quarter of 2013 as the company continues to invest in
utility infrastructure to support Alberta growth.
Adjusted Earnings were $180 million for the quarter ended March
31, 2013 compared to $174 million in the same period of 2012.
Earnings attributable to equity owners were $183 million for the
quarter ended March 31, 2013 compared to $190 million in the same
period of 2012. Adjusted Earnings will differ from earnings
attributable to equity owners because of the timing of recoveries
from or refunds to customers of amounts that are deferred by the
Utilities for regulatory purposes; however, over time there is no
difference.
Growth in the rate base continues to have a positive impact on
ATCO Electric. The Hanna Region Transmission Development Project,
which will provide major transmission reinforcement in southeast
Alberta, is nearing completion, and is expected to be in-service by
the end of the second quarter of 2013. Construction commenced on
the Eastern Alberta Transmission Line following receipt of project
approval in late 2012. The project will provide additional
transmission capacity to Alberta's existing electricity
transmission system. Together, ATCO Electric, ATCO Gas, and ATCO
Pipelines invested $511 million in utility infrastructure in the
first quarter of 2013 to support Alberta growth.
Adjusted Earnings for the quarter were partially offset by lower
realized prices on short-term forward power sales contracts for
ATCO Power's Alberta generating plants and an unfavourable
arbitration decision that reduced earnings for the Sheerness
plant.
RECENT DEVELOPMENTS
-- Canadian Utilities declared a second quarter dividend for 2013 of 48.5
cents per Class A non-voting and Class B common share. Canadian
Utilities' annual dividend per share has increased for 41 consecutive
years.
-- Canadian Utilities Limited issued $175 million of 4.5% Cumulative
Redeemable Second Preferred shares at a price of $25.00 per share.
-- Canadian Utilities Limited announced on February 21, 2013, that it
intends to split its Class A non-voting shares and Class B common shares
on a two-for-one basis by way of a share dividend in 2013. Canadian
Utilities Limited's parent, ATCO Ltd., also announced on the same day
its intention to split its shares by way of a share dividend in 2013.
The share splits of both companies are expected to occur concurrently at
a date to be determined following the Canadian Utilities and ATCO annual
general meetings, which are scheduled for May 8, 2013 and May 16, 2013,
respectively.
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary and reconciliation of Adjusted Earnings to
earnings attributable to equity owners is provided below:
For the Quarter
Ended March 31
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($ Millions except per share data) 2013 2012(4)
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Adjusted Earnings (1) 180 174
Adjustments for Rate Regulated Activities (2) (5) 7
Dividends on Equity Preferred Shares 8 9
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Earnings Attributable to Equity Owners 183 190
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Revenues 876 811
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Funds Generated By Operations (3) 411 411
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(1) Adjusted Earnings are earnings attributable to equity owners after
adjusting for the timing of revenues and expenses associated with rate
regulated activities and dividends on equity preferred shares of
Canadian Utilities. Adjusted Earnings also exclude one-time gains and
losses and items that are not in the normal course of business or day-
to-day operations. Adjusted Earnings present earnings on the same basis
as was used prior to adopting International Financial Reporting
Standards (IFRS) - that basis being the U.S. accounting principles for
rate regulated entities - and they are a key measure used to assess
segment performance, to reflect the economics of rate regulation and to
facilitate comparability of Canadian Utilities' earnings with other
Canadian rate regulated companies.
(2) Refer to Note 5 to the consolidated financial statements for
descriptions of the adjustments for rate regulated activities and the
timing of their recovery from or refund to customers.
(3) This measure is cash flow from operations before changes in non-cash
working capital. It does not have standardized meaning under IFRS and
may not be comparable to similar measures used by other companies.
(4) 2012 financial information has been restated as a result of adopting new
and amended IFRS accounting standards that became effective in 2013.
The $65 million increase in revenues was due primarily to
increased rate base in the utilities, colder weather in the first
quarter of 2013, and increased flow-through natural gas sales in
ATCO Energy Solutions' natural gas liquids extraction
operations.
Canadian Utilities' consolidated financial statements and
management's discussion and analysis for the three months ended
March 31, 2013, will be available on the Canadian Utilities website
(www.canadianutilities.com), via SEDAR (www.sedar.com) or can be
requested from the Corporation.
Canadian Utilities Limited, an ATCO company, with more than
7,100 employees and assets of approximately $14 billion, delivers
service excellence and innovative business solutions worldwide with
leading companies engaged in utilities (pipelines, natural gas and
electricity transmission and distribution), energy (power
generation, natural gas gathering, processing, storage and liquids
extraction) and technologies (business systems solutions). More
information can be found at www.canadianutilities.com.
Forward-Looking Information:
Certain statements contained in this news release may constitute
forward-looking information. Forward-looking information is often,
but not always, identified by the use of words such as
"anticipate", "plan", "estimate", "expect", "may", "will",
"intend", "should", and similar expressions. Forward-looking
information involves known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information. The Corporation believes that the expectations
reflected in the forward-looking information are reasonable, but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Any forward-looking information contained in this news release
represents the Corporation's expectations as of the date hereof,
and is subject to change after such date. The Corporation disclaims
any intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation.
Contacts: Canadian Utilities Limited B.R. (Brian) Bale Senior
Vice President & Chief Financial Officer (403) 292-7502
www.canadianutilities.com
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